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GIH to inject $150M in Eastern Company in 2024

On Saturday, GIH announced that it bought 669 million shares in state-owned Chemical Industries Holding Company (CIHC)’s subsidiary Eastern Company

By: Business Today Egypt

Mon, Nov. 20, 2023

Global Investment Holding (GIH) will provide Eastern Company with $150 million in hard currency in 2024 to boost the company’s ability to source manufacturing inputs, according to local media reports.

On Saturday, GIH announced that it bought 669 million shares in state-owned Chemical Industries Holding Company (CIHC)’s subsidiary Eastern Company for EGP 28.90 per share.

CIHC will be paid additional installments equivalent to $94.8 million in 2024, according to local media. This brings the total value of the transaction announced to $625 million.

GIH's acquisition of Eastern Company transaction marks the Madbouly government's most substantial single asset sale since the revitalization of its privatization strategy earlier this year.

Egypt expects up to raised EGP 70 billion through its initial public offering (IPO) program in Financial Year 2023/2024, according to a recent report the cabinet’s Information and Decision Support Center (IDSC).